Bitcoin (BTC/USD) Price Technical Analysis for Dec 18, 2017

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Bitcoin looks ready to resume its climb to another set of highs after completing its pullback to the ascending trend line. This rising support zone has been connecting lows since December 10 and is keeping losses in check once more.

Applying the Fib extension tool shows how high price can go from here. The 38.2% Fib is located near the $19,500 mark and the 50% extension is at the record highs. The 61.8% extension is at the $20,185.10 level then the 76.4% extension is at $20,718.82. The full extension is at $21,581.54.

The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. The short-term moving average also recently held as dynamic support, but a larger pullback could still find some buyers at the 200 SMA line in the sand.

Stochastic is already turning higher to reflect a pickup in bullish momentum. Similarly RSI is moving higher so bitcoin could follow suit and eventually test the record highs or even create new ones.

CME has launched bitcoin futures on its own exchange but the market reaction has been limited since CBOE already launched bitcoin futures a few days back. Nasdaq is said to launch its own by next year.

Still, the steady influx of funds from institutional and retail investors to bitcoin futures could prop price higher from here. After all, this could keep volumes and activity supported for the foreseeable future. Some analysts have even raised their price forecasts all the way up to $30,000 to account for this market development.

Then again, the dollar has been able to draw some support from Fed rate hike expectations for next year. The FOMC upgraded most of its forecasts for growth and hiring but Yellen has maintained her downbeat inflation outlook. Data has been weaker than expected on Friday but the dollar has been able to take advantage of the relatively hawkish bias.

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